GM Hands Over Saab to Swedish Company

Saab and GM signage is seen at the Symes auto dealership lot, after it was announced that General Motors is selling Saab, on June 16, 2009 in Pasadena California. (David McNew/Getty Images)

NEW YORK—General Motors Co. has signed a stock purchase agreement with a Swedish consortium of private investors for the sale of Saab, GM’s Swedish car brand. 

GM first invested in Saab in 1989, and then bought the entire company in 2000. But due to the company’s restructuring, GM started negotiations to sell its non-core brands, including the loss-making Saab.

On Tuesday, Swedish sports car maker Koenigsegg Group agreed to takeover Saab. 

The deal consummated after GM announced bankruptcy in June. Reinventing itself as the new GM, the company has sold off Hummer, Saturn, its German car brand Opel, and now Saab. 

The deal is supposed to secure Saab’s future, after the company cut 750 jobs in March and reported a $340 million loss in 2008.  

“This is excellent news for everyone connected to Saab around the globe“, said Jan Ake Jonssson, Managing Director of Saab, in a statement. ”This is an important step to secure jobs and our long-term future as a Swedish carmaker", he added.  

GM said it expected the deal to close in the next few months. Closing of the deal depends on funding commitments with the Swedish government and other guarantees. “This contract is an important step in the journey to a potential deal”, said Carl-Peter Forster, president of GM Europe. “The closure of the deal is contingent on the funding commitment from the European Investment Bank (EIB), guaranteed by the Swedish government.” 

GM will continue to provide Saab with chassis and engine technology. As part of the new deal, the technology sharing will continue “during a defined time period,” GM said. 

While Koenigsegg manufactures supercars, it sees in Saab the potential GM saw back in 2000. 

“Our plan is to transform Saab into a stand-alone, vibrant, [and] entrepreneurial company and make it ‘sustainable’ by making it profitable,” said Christian von Koenigsegg, CEO of Koenigsegg Group in a statement. 

Koenigsegg plans to bring the old Swedish brand back to it roots, as von Koenigsegg expressed, “we will revive Saab’s Swedish heritage of ecological sensitivity, safety, design innovation and ‘fun to drive’ experience.” 

Saab was originally a division of the Swedish Aeroplane Company, which manufactured aircraft for the Swedish Air Force.